LD IIP THREE LAST

Among other categories, intermediate goods grew by 14.3
per cent against (-)4.4 per cent a year ago.

It could safely be predicted that the industrial recovery
would be sustained, as capital goods expanded by 12.2 per cent
against 4.2 per cent a year ago. Basic goods could grow by 5
per cent compared to 3.2 per cent a year ago.
Industrial recovery could also be gauged from the fact
that out of 17 industrial categories, only one--jute and other
vegetable fibre textiles (except cotton)--recorded contraction
in production in October.
The September industrial production figures were revised
to 9.6 per cent from the provisional estimates of 9.1 per
cent.
The government has cut excise duty by six per cent in
phases, service tax by 2 per cent, besides stepping up public
expenditure as part of stimulus packages to spur economic
growth.
The packages, along with the RBI's soft monetary stance,
are yielding results as shown by the latest set of industrial
data and earlier GDP numbers. This would also heighten the
debate as to when should these packages be withdrawn from, as
fiscal deficit is projected to widen to 6.8 per cent growth
this fiscal.
In a pre-Budget meeting with Revenue Secretary P V Bhide,
a delegation from industry chamber FICCI asked the Finance
Ministry not to rollback stimuli unless the recovery is on a
firm footing. PTI TAN
DDC


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